Mortgage problems in the UK

In a remarkably candid interview, John Varley, the group chief executive of Barclays, warned that Britain is only mid way through the house price slump – meaning the total fall could be as much as 30 per cent.

He described as “madness” the previous lending policies’ of banks, in which 100 per cent mortgages and beyond were approved.

Mr Varley admitted that banks were partly to blame for the current recession, saying it was time they showed “humility” and said “sorry” to customers for their role in the sharp economic downturn. He said banks needed “to take their share of responsibility”.